VXZ vs XLI: Correlation
How closely do iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) and Industrial Select Sector SPDR Fund (XLI) trade together? Their weekly returns over three years give a correlation of -0.67, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VXZ and XLI?
On 3 years of weekly data the VXZ/XLI correlation comes out at -0.67, negative, meaning they tend to move in opposite directions. Little has changed lately, as the 1-year reading of -0.58 lands near the 3-year figure. The 5-year figure is -0.68, and annualized covariance runs at -271.2 %².
Within VXZ's tracked universe of 2840 assets, XLI comes in at #2807 by 3-year correlation. The last year tells two different stories: XLI led by 34.4 percentage points, -16.1% for VXZ against +18.3% for XLI. Risk is not evenly split, since VXZ carries 1.6 times the volatility of the other side.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
VXZ vs XLI: side by side
| VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -16.1% | +18.3% |
| 5-year return | -53.1% | +84.0% |
| Volatility (ann.) | 25.6% | 15.7% |
| Beta vs S&P 500 | -1.31 | 0.89 |
| Max drawdown (3Y) | -36.4% | -18.5% |
| Dividend yield | – | 1.15% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $32.9B |
| Sector / category | US Listed | Sector ETF |
XLI is an Industrials fund from State Street Investment Management: $32.9B under management, 83 holdings, a 0.08% expense ratio, a 1.15% trailing dividend yield.
Year-by-year returns
| Year | VXZ | XLI |
|---|---|---|
| 2022 | +0.5% | -5.6% |
| 2023 | -44.0% | +18.1% |
| 2024 | -12.7% | +17.3% |
| 2025 | +5.7% | +19.3% |
| 2026 | -10.5% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXZ and XLI good diversifiers for each other?
Yes. With a correlation of -0.67, VXZ and XLI have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between VXZ and XLI?
Using weekly returns as of 2026-08-27: -0.67 over 3 years, with -0.58 over the last year and -0.68 over 5 years.
Is XLI a good diversifier for VXZ?
Yes. With a correlation of -0.67, VXZ and XLI have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.67 mean?
A reading of -0.67 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vxz-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vxz-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: VXZ correlations · XLI correlations
